政在发声｜存贷款利率罕见同日双降：给企业和居民减负，也给银行负债端“松绑”

Core Points - The recent reduction in the Loan Prime Rate (LPR) by 10 basis points to 3% for one-year loans and 3.5% for loans over five years is in line with market expectations and is expected to lower monthly mortgage payments significantly [1][2] - The decrease in deposit rates, which is greater than the LPR reduction, will help banks lower their funding costs, although it may increase the difficulty of attracting deposits [2][3] - The LPR cut is seen as a positive signal to reduce financing costs for businesses and households, potentially boosting consumer spending and stabilizing the real estate market [3][4] Summary by Sections LPR Reduction - The LPR has been lowered for the first time in seven months, with the one-year rate at 3% and the five-year rate at 3.5%, both down by 10 basis points [1] - This reduction is expected to decrease monthly payments on a 1 million yuan mortgage by 56 yuan, totaling a reduction of 20,000 yuan over 30 years [1] Deposit Rate Adjustments - Major banks have initiated a reduction in deposit rates, with various terms seeing cuts ranging from 5 to 25 basis points [1] - The adjustments in deposit rates are aimed at stabilizing net interest margins for banks, which have seen a decline in net interest spread to 1.43% in Q1 2023 [2] Economic Implications - The LPR cut is anticipated to lower financing costs for the real economy, encouraging consumer spending and potentially stabilizing the housing market [3][4] - There is a need for further macroeconomic policies to support consumer demand and stabilize expectations, particularly in light of external uncertainties affecting trade [4][5] Financing Environment - The People's Bank of China is focusing on improving the financing environment for businesses, particularly through transparency in loan costs and reducing non-interest costs associated with borrowing [8][9] - A pilot program has been initiated to clarify the comprehensive financing costs for enterprises, which includes both interest and non-interest expenses, to enhance transparency and support small and medium-sized enterprises [9]